Chapter - 2- Foundational Concepts in MIS.pdf

ADVICE TO ALL EMPLOYEES

1. Build a home earlier. Be it rural home or urban home. Building a house at 50 is not an achievement. Don't get used to government houses. This comfort is so dangerous. Let all your family have good time in your house.

2. Go home. Don't stick at work all the year. You are not the pillar of your department. If you drop dead today, you will be replaced immediately and operations will continue. Make your family a priority.

3. Don't chase promotions. Master your skills and be excellent at what you do. If they want to promote you, that's fine if they don't, stay positive to your personal.
development.

4. Avoid office or work gossip. Avoid things that tarnish your name or reputation. Don't join the bandwagon that backbites your bosses and colleagues. Stay away from negative gatherings that have only people as their agenda.

5. Don't ever compete with your bosses. You will burn your fingers. Don't compete with your colleagues, you will fry your brain.

6. Ensure you have a side business. Your salary will not sustain your needs in the long run.

7. Save some money. Let it be deducted automatically from your payslip.

8. Borrow a loan to invest in a business or to change a situation not to buy luxury. Buy luxury from your profit.

9. Keep your life,marriage and family private. Let them stay away from your work. This is very important.

10. Be loyal to yourself and believe in your work. Hanging around your boss will alienate you from your colleagues and your boss may finally dump you when he leaves.

11. Retire early. The best way to plan for your exit was when you received the employment letter. The other best time is today. By 40 to 50 be out.

12. Join work welfare and be an active member always. It will help you a lot when any eventuality occurs.

13.Take leave days utilize them by developing yr future home or projects..usually what you do during yr leave days is a reflection of how you'll live after retirement..If it means you spend it all holding a remote control watching series on Zee world, expect nothing different after retirement.

14. Start a project whilst still serving or working. Let your project run whilst at work and if it doesn't do well, start another one till it's running viably. When your project is viably running then retire to manage your business. Most people or pensioners fail in life because they retire to start a project instead of retiring to run a project.

15. Pension money is not for starting a project or buy a stand or build a house but it's money for your upkeep or to maintain yourself in good health. Pension money is not for paying school fees or marrying a young wife but to look after yourself.

16. Always remember, when you retire never be a case study for living a miserable life after retirement but be a role model for colleagues to think of retiring too.

17. Don't retire just because you are finished or you are now a burden to the company and just wait for your day t

1. FOUNDATIONAL CONCEPTS IN MIS

2. Businesses function can be broken down into several core functions that work
together to achieve the overall organizational goals.
The functions of management can be grouped into five areas: planning; decision
making; organization and co-coordinating; leadership and motivation and
control.
These Business functions can be:-
Production/Operations:
This function is directly involved in creating the good or service that the business
offers.
It includes tasks like product development, assembly, quality control, and logistics.
Marketing and Sales:
This function focuses on promoting the business's offerings to generate leads, close
sales, and ultimately drive revenue.
Marketing activities include market research, advertising, and brand management.
Finance and Accounting:
This function manages the financial health of the business.
It involves financial planning, budgeting, record-keeping, and financial reporting.

3. Human Resources (HR):
This function is responsible for all aspects of employee management, from
recruitment and training to compensation and benefits.
HR also handles employee relations and ensures a positive work environment.
Information Technology (IT):
This function provides and maintains the technology infrastructure that the
business needs to operate.
IT includes tasks like network management, cyber security, and software support.
Customer Service:
This function focuses on providing support to customers before, during, and after
they purchase a good or service.
Customer service representatives answer questions, resolve problems, and strive to
create a positive customer experience
Research and Development (R&D):
This function focuses on innovation and developing new products or services.
Supply Chain Management:
This function oversees the flow of goods and materials from suppliers to the
business and ultimately to customers.
Warehouse (Inventory, Order Fulfillment, Shipping, Receiving)

4. Management functions are the core activities that managers perform to achieve organizational goals.
These functions can be broadly categorized into five main areas:
Planning: This function involves defining the organization's goals, establishing strategies to achieve
them, and developing plans to implement those strategies. Here's what planning entails:
Setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound)
Organizing: This function involves arranging and allocating resources (human, financial, material)
to accomplish the planned work. Effective organizing looks like:
Designing the organizational structure, which outlines Depts., teams, and reporting relationships
Assigning tasks and responsibilities to employees based on their skills and experience
Allocating resources such as budget, equipment, and technology
Leading: This function involves motivating, inspiring, and directing employees to achieve the
organization's goals. Here's how managers lead effectively:
Providing clear communication and direction
Motivating and engaging employees
Delegating tasks and empowering employees
Controlling: This function involves monitoring progress towards goals, identifying deviations, and
taking corrective action as needed. Controlling ensures things are on track by:
Establishing performance of progress and Monitoring performance against plans and goals
Staffing: This function involves recruiting, hiring, training, and developing employees. Staffing
ensures the organization has the right people in place to do the job by:
Developing job descriptions and specifications
Recruiting qualified candidates
Selecting the best candidates for the job
Providing training and development opportunities for employees

5. Data:- It is raw.
It simply exists and has no significance beyond its existence.
It does not have meaning of itself.
Information:- is data that has been given meaning by way of relational connection
knowledge obtained from investigation, study, or instruction.
Knowledge: is the appropriate collection of information is to be useful.
Knowledge is a deterministic process.
When someone "memorizes" information then they have amassed
knowledge.
This knowledge has useful meaning to them, but it does not provide for, in
and of itself, an integration such as would infer further knowledge.
Wisdom
Deep knowledge and understanding
Good judgment and sound decision-making
Acceptance and self-control
Wisdom is therefore, the process by which we also distinguish, or judge,
between right and wrong, good and bad.

7. Information needs refer to the information required to take decisions correctly and to carry out the tasks deriving
from them
Managers at all levels rely heavily on information to make effective decisions, plan strategies, and achieve
organizational goals.
Their information needs and sources can vary depending on their specific role and position within the company.
Information Needs of Managers:
Strategic Information: Senior managers need information on industry trends, competitor analysis, market research,
and economic forecasts to make strategic decisions about the organization's direction.
Operational Information: Middle managers require data on department performance, resource allocation, project
progress, and budget tracking to ensure smooth day-to-day operations.
Team and Employee Information: All managers benefit from information on employee performance, skills gaps,
training needs, and team dynamics to effectively lead and motivate their teams.
Information Sources for Managers:
Internal Sources:
Management Information Systems (MIS): Organizations use MIS to collect, store, and analyze internal data. This
can include sales figures, inventory levels, customer data, financial reports, and operational metrics.
Department Reports: Regular reports from different departments like marketing, finance, and human resources
provide insights into specific areas of the business.
Meetings and Communication: Meetings with employees, team discussions, and internal communication channels
keep managers informed about current issues, employee concerns, and project updates.
External Sources:
Government Data and Statistics: Government websites offer valuable data on economic indicators, demographics,
and regulations that can impact the business environment.
Professional Associations and Networks: Professional associations and networking events connect managers with
peers in their industry, allowing them to share information, best practices, and learn from each other's experiences.
Business News and Media: Following business news outlets and industry publications keeps managers informed
about current events, technological advancements, and emerging trends that may affect their organization.

8. Problem-solving abilities often separate the most valuable
managers and executives from the poor managers in terms of their
contribution to the organization.
The problem-solving model comprises five stages:
Intelligence stage: A problem or opportunity is identified and
information gathered to refine the scope, resources, and
constraints.
Design stage: Possible solutions are developed and the feasibility
of each evaluated.
Choice stage: The most appropriate solution is selected. The
decision is made.
Implementation stage: The problem is not solved until the
selected solution has been implemented.
Monitoring stage: In this final stage, the decision makers assess
how well the solution fits the problem and what modifications may
be necessary to improve it.

9. Operational decisions:- Lower-level managers oversee the day-to-day operations to make routine
This level deals with day-to-day activities and routine tasks that keep the organization running
smoothly.
For example, Handling customer complaints, Resolving production issues on the assembly line
Many traditional transaction processing systems (TPS) are designed for this level of management.
Most accounting systems, inventory control systems, and payroll systems perform this function.
Tactical decisions:- Middle-level managers, concerned with meeting short-term objectives.
It involve translating broad strategies into specific initiatives, resource allocation, and departmental
objectives.
E.g. Allocating budgets to different departments and Setting performance targets for teams
Strategic decisions:- Top-level managers or executives
This level deals with long-term goals and the overall direction of the organization.
Reports from MIS form only part of the total information requirements of senior management.
For example, Developing new product lines, Major investments in research and development,
Overall business strategy and mission , etc

11. Foundation concepts:
The managerial end user needs to have knowledge of the generic components and
properties of information systems
Development processes:
One should understand how methodologies such as the systems approach, the systems
development life cycle.
prototyping could be used to construct information systems applications that
successfully meet end user and organizational needs.
Information Technology:
they should have an understanding of major concepts, developments, and management
issues in information technology
Basically, Hardware, Software, Telecommunications and Database management
Business Applications:
They should gain a basic understanding of information systems concepts and
applications in areas such as end user computing, office automation, transaction
processing, information reporting, decision support, executive support and artificial
intelligence.
Management challenges:
This area requires understanding the major challenges and methods involved in
managing the resources, technologies, and activities of information systems.

12. Business System is an open, adaptive organizational system
operating in a business environment.
A business consists of the following interrelated system
components:
Input: Economic resources such as people, money, material,
machines, land, facilities, etc.
Processing: Organizational Processes such as marketing,
manufacturing, and finance transform input into output.
Output: goods and services, payments to employees and
suppliers, dividends, taxes, and information
Feedback: A primary role of information systems is serving
as the feedback component of an organizational system. They
provide information to management concerning the
performance of the organization.
Control: management is the control component of an
organizational system.

13. Information Systems (IS) play a critical role in the success of any modern business.
Here are some of their fundamental roles:
1. Supporting Business Processes and Operations: IS facilitates the smooth running of
everyday business activities. This can involve:
Transaction processing: like sales processing, inventory management, and payroll.
Communication and collaboration: It also facilitates communication with customers
and suppliers.
Data storage and retrieval: IS store vast amounts of data electronically, making it
easily accessible for authorized users.
2. Improved Decision Making: IS empowers businesses with data-driven decision making.
Data analysis and reporting: IS provide tools to analyze data, identify trends, and
generate insightful reports.
Real-time data access: Many IS provide access to real-time data, allowing businesses.
3. Competitive Advantage: In today's competitive landscape, IS can be a game-changer:
Innovation: IS can help develop new products and services, improve existing offerings,
and streamline operations, giving businesses an edge over competitors.
Customer focus: IS enables businesses to collect and analyze customer data, leading to
better customer service, targeted marketing campaigns, and ultimately, increased
customer satisfaction.

14. Electronic business (e-business):
It is also known as e-business or online business.
It is using the internet and electronic tools to conduct
various business operations.
It exchanges, both within an organization and with external
stakeholders supporting the range of business processes.
We define e-business as the use of Internet technologies to
work and empower business processes, e-commerce, and
enterprise collaboration within a company and with its
customers, suppliers, and other business stakeholders.

15. E-business plays a critical role in the success of businesses
today.
Here's how e-business impacts businesses:
Increased Efficiency and Productivity:
Automation
Streamlined Processes
Improved Collaboration
Enhanced Customer Focus and Satisfaction:
24/7 Availability
Personalized Experiences
Improved Communication
Expanded Market Reach and Growth:
Global Marketplace
Reduced Barriers to Entry
Scalability